It's time to get defensive on stocks, Bill Spiropoulos, CoreStates Capital Advisors chief executive, told CNBC Wednesday.
"The markets are up 100 percent from the March 2009 low and our studies show it's getting late in the game," he said. "You can still see upward trends but you have to take a stance and have multiple strategies in multiple markets."
Spiropoulos thinks investors should limit their long equity exposure to 40 percent and said there are a lot of places to make money other than stocks, including foreign exchange, managed futures and commodities.
When he does invest in stocks he goes for some familiar names — Exxon , Boeing and Johnson & Johnson .
Spiropoulos likes J&J in particular because it dominates its industry, sells hundreds of products around the world and survived recent product recalls. "I sleep well at night, and I’d rather own that [stock] than the 10-year Treasurys," he said.
Michael Yoshikami, CEO of YCMNET Advisors, also likes J&J for much the same reasons plus the company's regular dividends, he said in the same interview.
Owning J&J stock is "a way to participate in equity markets without going too far out on the edge, without taking too much risk," he explained. "You want to be defensive in case there is a downdraft. You have a name that can survive any plunge in the markets."
His other picks are Walt Disney , Qualcomm and McDonald's.
CNBC Data Pages:
Bill Spiropoulos owns XOM, JNJ and BA in portfolios and employee accounts.
Michael Yoshikami buys DIS, QCOM, JNJ and MCD for clients but has no personal or investment banking conflicts.